Feeling sluggish (no offence Sluggy!) This winter is killing my energy and motivation. I dragged my butt through vacuuming today and I did my taxes!! I also wasted a lot of time waiting for phone calls. Phooey.
Taxes: I made a mistake this year. I've been doing my own taxes for 40 years or more and have never had any issues...until now. I over-contributed to my RRSP. Yessir, I did, I confess. Please don't use the handcuffs officer.....
The problem was the $5,000 early retirement incentive the school board gave me last June. I assumed, incorrectly as it turned out, based on what I read on the Canada Revenue Agency website, that I could put all of it into my RRSP, that it was eligible. But when I got my T4 yesterday the whole amount was listed as ineligible. I was only allowed to put part of it into my RRSP. Well, I did my taxes anyway and sent them away. I'm still due a good-sized refund so if I owe CRA any money they can take it out of that.
Alternately, I'm also allowed to remove the excess out of my RRSP and pay the tax on it. OR (and I like this idea the best) I can send a letter to CRA explaining:
As I'm planning to withdraw $5,000 after March 1st I may be covered. I'm going to give it the old college try anyway and mail off a letter in a couple of days begging that my stupidity be forgiven.
Have you ever had issues with Uncle Sam?